Bitcoin has been long overdue for a major correction. We have finally seen a move towards the previously broken trend line support which has now turned into trend line resistance. This is a point where the beginning of a major downtrend in this market can be expected. The bears that were rooting for BTC/USD to fall to $7.6k when it was trading around $8.6k are now feeling the pain as most of them have been shaken out of their positions. We discussed how this could happened in our videos from before and it has finally played out as we anticipated.
This is now a time where a major trend reversal is expected not only in the cryptocurrency market but also in the stock market. The S&P 500 (SPX) has made an insane move past the 3,000 mark which is beyond anyone’s understanding at this point. This is meant to make the bulls more confident and have them think that things are about to normalize soon and we are ready for another move higher. You can see the same thing in the cryptocurrency market. The bulls are made to believe that the market is ready to shoot past $10k and begin a new uptrend from here when the opposite is in fact in the making.
We expect BTC/USD to decline down to $1k if this turns out to be a normal market cycle. However, it is important to realize that Bitcoin has never seen a bear market in stocks. If we see something like 2008 happen again, then it is hard to say that BTC/USD will bottom at $1k. In that case, it could potentially go much lower and more importantly than that it might be years before it recovers to current prices. This is the reason we are seeing the price trade between $9k and $10k for such a long time.
Most of the big players are well aware of what is about to happen next and they also know that we are not going to see these prices again in a very long while. While many markets are primed for a decline at this point, the Dollar Currency Index (DXY) as well as Uranium could turn out to be one of the few winners. The demand for Uranium is expected to rise in the years ahead. Meanwhile, cash still remains king and the US Dollar (DXY) will continue to see a rising demand in the months ahead.